At any given airport, the airlines hold long-term leases for passenger loading gates. New gates cannot be added without approval of the airlines. Frequent flier programs are also common in the industry. It is, therefore, more difficult for a new airline to enter a given airport (market). Such factors: (i) are called barriers to entry. (ii) tend to decrease the contestability of the air travel
market.
a. i and ii
b. i not ii
c. ii not i
d. neither i nor ii
a
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If the price of diamonds is expected to decrease, all else equal, then the demand for diamonds ________ and the demand for platinum ________
A) decreases; increases B) decreases; decreases C) increases; increases D) increases; decreases
The stock of high-powered money in the economy is $80 billion. The bank reserve-holding ratio is 0.12 and the public wishes to hold 10% of its deposits as cash. The level of bank deposits will be
A) $333 billion. B) $100 billion. C) $250 billion. D) $200 billion.
The group of goods and services used to compute the GDP deflator changes automatically over time, but the group of goods and services used to compute the CPI does not
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT a characteristic of a market in equilibrium?
A. Neither buyers nor sellers want the price to change. B. Sellers can sell as many units as they want at the equilibrium price. C. There is neither excess supply nor excess demand. D. Buyers can buy as many units as they want at the equilibrium price.